How to Create Monthly Budget Sheets
Creating a monthly budget is an important first step in managing your personal finances, and a mandatory step for those who want to lower their debt and build personal wealth. A monthly budget allows you to understand your exact amount of disposable income, where your income is going and the amounts and types of debt you are paying. It also gives you the information you need to create a debt reduction and savings plan.
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Things You'll Need
- Paper
- Pencil
- Calculator
- Recent receipts
- Monthly invoices
- Bank statements
- Payroll stubs
Instructions
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Instructions
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1
Gather all of the recent invoices, bank statements, receipts and payroll stubs you can find. These are necessary for you to know exactly how much money you have coming in (your income) and how much you have going out (your expenses).
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2
Using your invoices, receipts and bank statements, make a list of your monthly expenses. Categories may include mortgage or rent, electric, gas, commuting costs, car payment, insurance, cable, Internet, cell phone, land phone, food and entertainment. Review your bank statement to make sure you don't miss a category of expenses.
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3
Review your payroll stubs and bank statements and make a list of your monthly income. Be sure to include any money received regularly such as child support, alimony or investment returns.
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4
Review your list of monthly expenses and monthly income to verify you haven't missed anything. Use the calculator to find your total monthly expenses and your total income.
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5
Subtract your total monthly expenses from your total monthly income. If you have money left over, you can use the amounts listed as your regular monthly budget.
If your monthly expenses are greater than your monthly income, you need to review the amounts and categories you have listed to determine where you can make adjustments to lower your expenses. Once you've made these adjustments, you will have created your ideal monthly budget.
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Tips & Warnings
If you have excess income remaining after paying your monthly expenses, consider creating an investment and/or savings plan as part of your monthly budget.
If your monthly expenses are greater than your income, you have two options. The easiest solution is to cut out any unnecessary expenses. Easy adjustments include eating out less, using less expensive cable and Internet services, shopping sales and thrift stores for clothing and cooking with seasonal, fresh foods instead of prepackaged, convenience foods to reduce grocery expenses. Many utility companies have budget plans that can reduce the cost of the monthly bill.
The second option is finding a way to increase your income by taking a second job or creating some type of secondary business. Before choosing this option, carefully weigh all the aspects of secondary employment to make sure you will not increase your expenses by adding additional commuting costs or start-up investment expenses.
